RIGA WATER AND SANITATION II

Promoter – Financial Intermediary

RIGAS UDENS SIA

Location

• Latvia

Description

The operation will co-finance part of the 2025-2028 investment programme of Rigas Udens, the water company for Riga and surrounding communities in Latvia. The related investments mainly include the extension and rehabilitation of water supply and wastewater collection and treatment infrastructure.

Additionality and Impact

The Project concerns the co-financing of part of the 2025-2028 investment program of Rigas Udens ("RU"), the water company for Riga and surrounding communities in Latvia with a population of around 610,000. The Project cost comprises the extension and rehabilitation of water supply and wastewater collection and treatment infrastructure. Investments in water supply will reduce the non-revenue water (i.e., water that is produced but not billed due to losses and inefficiencies), while investments in wastewater collection will reduce groundwater pollution. All investments support the water utility to increase its energy and water efficiency. The Project contributes to the EU and EIB policy objectives of environmental protection and climate action and will help mitigate market failures by financing infrastructure that generates positive environmental public health and climate externalities that are not fully reflected in the applicable water and wastewater tariffs in the service area. The Project also supports the strengthening of the EU's economic, social and territorial cohesion. 

EIB provides a significant financial contribution by offering longer maturity and flexible customised terms compared to the conditions currently available on the market. EIB financing will help Rigas Udens to diversify funding sources. Thus, EIB's involvement will have an impact on mobilising other financiers and signalling that the Project is sound and worth supporting, thereby facilitating the full financing and implementation of the Project.

Objectives

The aim is to enhance the quality and security of water supply and wastewater collection and treatment.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

EUR 70 million

Total cost (Approximate amount)

EUR 170 million

Environmental aspects

The project will contribute to ensure compliance with key EU directives in the water sector, notably the Drinking Water Directive (2020/2184/EU), the Urban Waste Water Treatment Directive (91/271/EEC), and the Water Framework Directive (2000/60/EC). Where applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2014/52/EU, which amends the EIA Directive (2011/92/EU), and SEA Directive (2001/42/EC) will be adhered to. In such cases, before utilising any EIB funds, the Promoter shall submit the EIA to EIB for publication on EIB's website. For any part of the project that may impact a nature conservation site, the Promoter shall provide EIB with information on the mitigating measures necessary to comply with the Habitats Directive (92/43/EEC) and the Birds Directive (2009/147/EC).

Procurement

The Borrower shall ensure that all contracts related to project's implementation have been and will continue to be tendered in accordance with applicable EU procurement legislation, specifically Directive 2014/25/EU and Directive 92/13/EEC, as interpreted by the Court of Justice of the EU. Also, tender notices must be published in the Official Journal of the EU whenever required.

Status

Signed - 7/04/2025